Candles in Context Candles in Context Not an ideal dark cloud - - PowerPoint PPT Presentation

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Jun 06, 2023 234 likes •458 views

Candles in Context Candles in Context Not an ideal dark cloud cover, but?? 201 Trading Tactics - - Candles in Context Candles in Context Trading Tactics 1 a) What are the candle lines at the arrows at 1 and 2 ? b) Where would you be more

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Candles in Context Candles in Context Not an ideal dark cloud cover, but??

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Trading Tactics Trading Tactics -

Candles in Context

Candles in Context

a) What are the candle lines at the arrows at 1 and 2 ? b) Where would you be more bullish, at 1 or 2, and why? c) On what candle line would you buy after the signals at 1 and 2? d) If you buy at 1 or 2 where is a potential protective sell stop? 1 2

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Nison Trading Nison Trading Principle Principle Do not only consider the Do not only consider the market’s price. Analyze the market’s price. Analyze the shape and size of candle shape and size of candle lines at that price. lines at that price.

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How are new highs are made

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How are new highs or lows made How are new highs or lows made

New High Close

Bulls’ can’t sustain rallies for more than

ne session as shown

my the red arrow.

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How are new highs made? How are new highs made?

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How are new highs/lows made? How are new highs/lows made?

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The water looks fine! The water looks fine!

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“ “Those knowing when Those knowing when to fight and when not to fight and when not will be victorious” will be victorious”

Candlecharts.com

Consider risk-reward

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Nison Trading Nison Trading Principle Principle

Even a “perfect” candle signal Even a “perfect” candle signal does not equal a good trade! does not equal a good trade! YOU MUST ALWAYS YOU MUST ALWAYS JUDGE THE POTENTIAL JUDGE THE POTENTIAL TRADE’S RISK TRADE’S RISK-

REWARD.

REWARD.

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Stops Stops

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Stops Stops

Window as support shown by bullish shadows and hammers at the arrows. Once the support is broken we must readjust our bullish view. window

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Obtaining targets Obtaining targets

Buy on the hammer during the week of April 8, an obvious resistance area would be towards 615.

hammer

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Obtaining Price Targets Obtaining Price Targets

Shooting star confirms resistance at top end of box range. Sell on the shooting star with a potential target at bottom

f the box range near 55.

Shooting Star

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Using Western TA for target Using Western TA for target

19 25 4 March 11 18 25 1 April 8 15 22 29 May 6 970 975 980 985 990 995 1000 1005 1010 1015 1020 1025 1030 1035 1040 1045 1050 1055 1060 1065 1070 1075

x10

DJ INDU AVERAGE

Bullish engulfing pattern gives a turning signal with falling resistance line as a target

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Trading Tactics Trading Tactics-

Case Study

Case Study

15 22 29 May 6 13 20 28 10.9 11.0 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 12.0 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 13.0 13.1 13.2 13.3 13.4 13.5 COMVERSE TECH

Bullish shadows at arrows show demand. A hammer is a potential buy signal. If the trader feels that the market was to high to buy on the next session’s open, there is now a window as support. On a correction, we can buy within the window. A potential target is the April highs near 13.4. Once there a bearish engulfing pattern confirms this resistance.

Hammer

Rising window

Bearish engulfing pattern

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Trading Tactics Trading Tactics-

Targets

Targets

3 20 28 3 June 10 17 24 1 July 8 15 300 400 500 600 700 800 900 1000

x1000

Volume 26.0 26.5 27.0 27.5 28.0 28.5 29.0 29.5 30.0 30.5 31.0 31.5 32.0 FIDELITY NATL

1) Buy on first hammer, exit at bearish engulfing pattern (circled). This bearish engulfing pattern took on extra significance since it also confirmed resistance. Or 2) Sell short at bearish engulfing pattern and exit at second hammer (which confirmed the first hammer’s support area).

hammers

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Trading Tactics Trading Tactics-

Targets

Targets Use hammer to buy and window to exit hammer

Falling window

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Hammer and Risk/Reward Hammer and Risk/Reward Risk reward

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Risk/Reward Risk/Reward

14 22 28 4 February 11 19 25 Ma 60.0 60.5 61.0 61.5 62.0 62.5 63.0 63.5 64.0 64.5 65.0 65.5 66.0 66.5 67.0 67.5 68.0 68.5 69.0 69.5 INTL GAME TECH

Morning doji star as support. Buy on hammer, target is recent pivot high. This represents an attrive r/r. Pivot high